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Volkswagen Lands Deal In Shaky Period for Carmaker Bonds

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A Volkswagen AG entity is set to raise new debt on Tuesday in a deal that tested demand among bond investors during a tough time for European carmakers.

Volkswagen Financial Services — the German firm’s in-house customer financing businesses — is poised to raiseBloomberg Terminal €2.75 billion ($2.92 billion) via three green bonds, according to a person familiar with the matter who asked not to be identified. The tranches are due between 2.5 and seven years and orders amounted to more than €11.7 billion at final terms.